DAIRY CONTROL BOARD.

Northland Age, Volume 25, Issue 16, 13 August 1925, Page 7

DAIRY CONTROL BOARD.

MR. GROUND’S ADDRESS. Owing no doubt to the very inclement weather, there was a poor attendance at the Kaitaia Agricultural Hall on Saturday night to hear Mr. W. Grounds, chairman of the N. Z. Producers Control Board. Mr. Grounds, together with other delegates, recently visited England, America, Canada and the Continent to investigate the question of dairy produce control. In Ins very interesting address Mr. Grounds explained what had been done by the delegation, who had returned with the knowledge that although America had its up-to-date universities and other helps, production could not compare with New Zealand. The marketing of produce was almost entirely in the hands of the merchant classes, and this meant that the factories had to speculate. One firm in the States had to sell their butter at a very low price last year because they had very large consignments of purchases coming to hand. Another firm sold butter by auction and cheese privately, while in Ontario (Canada) they sell cheese by auction and butter privately. While in England the delegation explained the object of their visit to importers, and received very important information from them. They also met the wholesale and retail distributors, and gleaned information to enable them to give the Board an estimate of the cost of distribution. New Zealand had to find an outlet for its increase of dairy produce, the increase during the past 20 years being 70 per cent on exported butter and 229 per cent on cheese.

Dealing with their visit to Denmark, Mr. Grounds said the Danes were leaving nothing undone to develop the industry and they were with New Zealand in its attempt to stabilise markets and prices, which was the object of the Control Board.

Referring to the careless handling of dairy produce in England Mr. Grounds related how they had found butter freighted on ordinary iron barges without insulated space. They sought an explanation from th« manager of the barge co and he told them insulated barges had never been asked for. They also found N. Z. blitter, including some from Kaitaia, in ordinary temperature stores, and it had been there for 26 days. Under these conditions butter deteriorated rapidly- and when they had some of this butter graded it was found to be 4 points below any factory exporting. The manager of the store was quite easy about the matter, the butter having been sold and awaiting removal by the merchant. It had not, however, been sold to th« consumer, said Mr. Grounds, and this was most important from the producejs’ point of view. This butter was purchased by some speculator who was waiting for a rise in the market. Mr. Grounds dealt with various aspects of the question at Home. On returning they called at Australia where a Control Board has been formed. Even Russia had a Control Board.

Concluding, Mr. Grounds urged all*to assist in organising the Dominion scheme and make it a national organisation so that they could effectively meet the opposition of other countries. There were gambles in produce at Home, an illustration being the case of December 15th last when N. Z. butter was 204/- a cwt and in January it dropped 40/-. This was due to holidays intervening and speculations. A fortnight later the price went up again. People at Home were strongly in favour of stabilising the market and recognised that the Board was .the only body to do this. Since N. Z. supplies 50 per cent of the cheese and 20 per cent of the butter that enters England the distributing firms had to be with them. And there were other firms at Home who 'had never handled N. Z. butter but under the Board’s control were prepared to put up their letters of credit. The Board did not propose to alter the present channels of distribution, but would supervise the selling market. The propaganda about opposition firms retaliating was so much moonshine. It would, of course, be impossible to stabilise the world’s markets but the Board would see that no firms were cutting below others with N. Z. produce. Farmers could help greatly by improving the quality of produce, and if they did this they need not fear competition. The Board would encourage high quality production by giving an extra %d per lb for superfine produce. In England the delegation investigated the insurance of produce and they found that by

insuring the whole output together they would save thousands of pounds yearly. Last year the Board saved £120,000 in shipping rates; this year a similar sum would be saved, and next year £240,000. And all this with better transport. There was a lot of adverse propaganda regarding absolute control, but it was essential that the Board have absolute I control. They wanted a free | hand, and it was in the best interests of the country as well as the producer that they have this control. There was continual criticism of the Board by interested parties but each representative had only one desire and that was to safeguard the interests of the producers. In turn producers must trust the Board and give them an opportunity of developing their policy. QUESTIONS.

Replying to Mr. E. C. Matthews, Mr. Grounds explained the present system of electing Board members, a system he did not favour, but they were not asking for any amendment to the Act at present. Mr. L. H. Bell asked where the Board stood with regard to "Anchor” brand butter which the N. Z. Dairy Assn were reported to have sold for some years to come. Mr. Grounds said that any contracts entered into prior to July 1923 could not be effected by the Board. The N. Z. Dairy Assn had, however, indicated that they were prepared to transfer any equity to the Board from these contracts. In answer to Mr. G. Hodgson who asked why the Board did not regulate supplies to England last year Mr. Grounds said it was because the Board had not then decided on its policy.

Mr. H. B. Matthews asked if the Board would investigate the question of small dairy factories such as Kaitaia having their own bacon factories attached. Mr. Grounds said the Board would certainly investigate the position and advise companies. The Danes had the world beaten with bacon, their mild-cured product being sold in London within a week from killing, They had the business of pig raising down to a fine art. Replying to Mr. J. P. Coulter, Mr. Grounds said the Board could not guarantee an even price for produce throughout the season. This was impossible owing to fluctuations of seasons and other circumstances, but the fact that the supply was properly regulated would tend to stabilise the market. Regarding insurance on produce, rates for companies such as Kaitaia would be cheaper this year because the coastal risk was included in the overseas risk.

Mr. Hodgson asked what qualifications Messrs Motion andirons had for appointment at Home, Mr. Grounds replying that these gentleman, who had done great service for the industry, were nominated by producers. They would not handle the commercial side of the Board’s work. Replying to Mr. C. B. Michie, Mr. Grounds said those antagonistic to the Board were trying to damage it in the eyes of consumers, but the Board would do its best to combat statements such as made by the person Mr. Michie referred to. Mr. D. Archibald asked if the Board intended to ship all butter to London or would they send direct to Glasgow and other centres and was informed that it was the Boards intention to develop direct sales to different centres.

Replying to a further question by Mr. H. B. Matthews Mr. Grounds said he thought they could develop a market in the Eastern States of America. At present there was a duty of 8 per cents per lb levied on imported butter and producers there were asking for a 12 per pent duty. Replying to Mr. Marsh, Mr. Grounds said the question of fertilisers was outside the scope of the Board, but at the same time the Board desired to encourage production in every way. Mr. Marsh also wished to know if any reduction had been made in the unreasonable rate of exchange (£2-17-6 per cent). Mr. Grounds in reply, pointed out that since the return to the gold standard exchange rates had been considerably reduced. After Mr. C. S. Puckey, (chairman), had moved a vote of thanks to Mr. Grounds for his fine address the following resolution was moved by Mr. L. H. Bell, seconded by Mr. E. C. Matthews, and carried unanimously : "That this meeting of farmers and business men of Kaitaia and surrounding districts, thanks Mr. Grounds for his able and straightforward address, expresses its continued confidence in the N. Z. Dairy Control Board and approves of the scheme set out for the absolute control of

J the sale of the Dominion’s dairy produce on the markets of the world ” In returning thanks Mr. Grouns said they never lacked support in the Nerth, where a keener co-operative spirit was displayed than in some other places. He moved a vote of thanks to the chair, which was carried.